DHL expands in China

DHL is expanding its express network in China. With a five-year investment programme of US$200m, Deutsche Post World Net's express and logistics subsidiary is markedly increasing its capacities in the China.

'By expanding air infrastructure we will strengthen our active role as a leading industry partner in China,' reported Uwe R. Dörken, Board Member Express Worldwide at Deutsche Post World Net, to the press today in Shanghai. 'During the next few years, China will become one of DHL's most important markets world-wide. Driven by growth in trade and industry, during the previous years logistics here has become a decisive factor of the economic upturn.' In China, DHL is recording an annual growth of thirty-five to forty-five percent.

The investment's main focus is expanding the production centres and the locations, and building up personnel as well as purchasing new vehicles. Seventy-five further stations, 1,200 new vehicles and over 2,000 additional jobs are on the agenda.

During the mid Eighties, DHL already established a joint venture with Sinotrans, China's leading logistics provider. With five percent, DHL acquired the largest share amongst the strategic investors in the company in February this year. 'In doing so we have won a strong partner, from whose market expertise DHL has always benefited. The joint venture with Sinotrans is an optimal basis for being successful on the promising Chinese transport market,' said Mr Dörken.

With the USA as one of China's most important trading partners, DHL's strategic orientation towards the US market is a decisive factor for customers in China. By acquiring Airborne Express, DHL has become a strong competitor on the US market.

DHL is currently active in China with forty-two branches, 160 stations and 700 vehicles in 318 towns and cities.